Leadership and Management Roles in Organizational Structure

The provided document is a solved assignment on leadership and management roles in organizational structure. It references various books, journals, and online sources to discuss the different aspects of leadership and management, including contingency theory, situational leadership, and total quality management. The assignment also touches upon the role of local government managers and constructed floating wetlands. A summary of the main points is presented at the end.

MANAGEMENT &
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1. Introduction of Toyota........................................................................................................1
2. Differences between management and leadership.............................................................2
3. Roles of management and leadership in application to organisational situation................3
4. Strength and weakness of leadership and management.....................................................4
5. Conclusion that manager and leaders have made an impact on the organisation..............6
TASK 2............................................................................................................................................6
1. Key Operations of Toyota..................................................................................................6
2. Roles and Responsibilities of Managers in key operational functional area......................7
3. Approaches of operation management and its value..........................................................7
4. Impact of external business environment factor that affect decision making of Toyota..10
5. Management and leadership approaches to improve operational efficiency....................11
6. Conclusions and Recommendations.................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is the key area of management which is connected with
developing and monitoring the procedure of production and redesigning operations of business in
the development of goods and services. Main purpose of operations and management is
maximized productivity with efficiency. Toyota Motor Corporation is Japanese multinational
automotive company which founded by Kiichiro Toyoda in 1937. It produces vehicles under 5
brands including Toyota, Hino, Lexus, Ranz and Dahihatsu. Report will highlight the
management structure of Toyota. It will also present the difference between role of leaders and
managers. In these key operational approaches will be discussed that how they affect decision
making of organization.
Task 1
1. Introduction of Toyota
It is a multinational automotive manufacturer headquartered in Japan. It is founded by
Kiichrio Toyoda in 1937 by the mode of spin off from his father's company named Toyota
industries. Toyota is the world's second largest automotive manufacture. Its corporate structure
consists of 364,445 employees. it is the largest listed company in Japan by market capitalization.
All over the world, Toyota is the market leader in sales of Hybrid electric vehicles. Toyota has
great success all over the world because of its great reputation for offering the best quality and
customer care (Mavin, 2016).
Toyota's management structure:
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Illustration 1: Management Structure

Source: (Divisional Organizational Structure, 2017)
Toyota has a Divisional management of organisational structure, having strong
centralizes global hierarchy. Headquarters of the company in Japan make all the major decisions.
All the different and individual units do not communicate to each other as they are completely
centralized and all the communication has to go to the headquarters. However, this centralized
form of structure involves different issues and at the same time it is slow in process. Due to
various issues reorganisation is been done and it implemented in 2013 and the new
organisational structure is made to make their business more efficient and effective. The new
structure has following characteristics.
2. Differences between management and leadership
Definition of Managers - Manager is a person who is responsible for controlling or for
managing the administration of an organisation or group of staff.
Definition of Leaders - Leader is the one who is responsible for the leading or
commanding the group, organisation or country.
Difference between Management and Leadership
Basis Managers Leadership
Setting directions Managers perform the roles
and responsibilities which
includes planning, organizing
and staffing functions.
They represent Toyota corp.
And transmits information
about the company's goals to
the outer world.
Leaders have a role to provide
guidance and direction to the
team members.
They help the managers of
Toyota corporation in
representing the enterprise at
different seminars.
Characteristics -: Managers of Toyota corp. are
Process Oriented. They are
Always protecting themselves.
These people are Dependent
on the superiors or others for
taking decisions.
Leaders of Toyota corp. are-
Vision Oriented. They are
Always up in protecting the
staff. They help Firm in active
decision-making.
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Communication Managers has
the characteristic of versatility.
They are not engaged in direct
communication with their sub-
ordinates. Leaders of Toyota
are effective communicators,
they are engaged in open
communication with there
team members.
Innovative Managers of Toyota perform
the tasks which has been asked
to them.
Leaders of Toyota bring out
the new innovation to
complete task
Difference between management and leadership
Basis Management Leadership
Resource allocator Management of Toyota has a
role of allocating resources to
the team working in
organisation. They make sure
that resources are been
effectively used.
Leadership in Toyota has the
decisional role. In this, leaders
ensure that effective
judgement are been made.
Negotiator For ensuring proper
management, managers of
Toyota negotiate with
suppliers as well as employees.
Leadership is being made
effective in Toyota by
resolving the conflicts by
maintaining interpersonal
relationship.
3. Roles of management and leadership in application to organisational situation
Roles of managers and leaders in different organisational situations are:
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Conflict- It has been analysed that Toyota is going through situation of conflict due to
unclear team goals and objectives (Pavlineri, Skoulikidis and Tsihrintzis, 2017). For resolving
conflicts managers of Toyota are assigned with the role of negotiating with employees.
Negotiation is done by understanding the needs and demands of employees and then working on
it.
Leaders perform the role of involving in open communication with the employees, so that
conflict can be resolved.
Communication problem-In Toyota there also exist situation of miss-communication as
no open communication exists between senior managers and lower managers. To solve this
leaders and managers are involved in performing the role to openly communicate with
employees. Also, they are engaged in building up interpersonal relationship with workers.
(Nelson and Svara, 2015).
Planning: In analysing the organisational situation on which manager and leader play
their role differently. In relation with decision making manager is motivated toward materialistic
things which have approached him to consider the profitability as well as growth of the
organisation. While as per considering the activities performed by a leader in this situation they
consider the operational requirements as well as efficiency of workforce to perform such tasks.
Delegating: As per considering the responsibilities of a manger and leader on which it
can be said that, leader used to analyse the situation, employee motivation as well as level of
efforts made them in attaining the targeted goals. In accordance with managerial perspective
where it can be said that, they are target oriented the main target they are obliged with is the
completion of tasks in a required period.
Evaluating: the evaluation of performance and attainment of targeted aims at the right
time is being considered by the managerial professionals. However, in accordance with such
ascertainment where leader used to make effective analysis and control over the facts for
monitoring the level of efforts made the individual in a particular work.
4. Strength and weakness of leadership and management
Strength and weakness of leadership approaches are:
SITUATIONAL APPROACH
Situational leadership approach explains that no single leadership style is best, instead it
all depends on the situations faced by leaders.
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STRENGTH WEAKNESSES
1. This approach brings the leader to manage
all the situations under him. It has both the
supportive and directive dynamic.
2. it is practical and easy to understand.
3.it focuses and emphasize on the flexibility of
leader.
4. Delegation is also another strength of this
approach as managers allow employees to
decide how to assess each task.
1. Hard to define the commitment is
conceptualized.
2. Difficult for some leaders to adjust and
adapt flexible and dynamic situations
(Vega, 2018).
3. This type of approach generally focuses
on fulfilling the immediate needs
hence, shifts the attention away from
long term goals.
CONTINGENCY APPROACH This theory explains that there are various factors that
can impact the leaders success in a given job situation.
STRENGTH WEAKNESSES
1. It also allows the management to
modify the roles of employees who are
already working on the project to
ensure success
1. It is complex in practical aspect
2. This approach is reactive in nature
not proactive (Liu and et.al., 2016).
SYSTEM APPROACH TO LEADERSHIP
A Systems leadership supports the leaders in company to develop the situations where
employees at all levels can perform more better according to their abilities and capabilities.
STRENGTH WEAKNESSES
1. This approach identifies the
interdependencies and inter relations
between various parts of organisation.
2. it helps organisation to be more
adaptive in accepting environmental
changes.
3. its focus is achieving the organisational
1. It May not be always practical and lead to
delays in decision making.
2. Nature of inter-dependence is not defined
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a swell as individual goal.
4. this approach focuses on multiple
dimensions of management.
5. there is uniformity in decision making
(Amado, 2018).
5. Conclusion that manager and leaders have made an impact on the organisation
Impact of managers- They play vital role in Toyota. Managers are responsible for
evaluate performance of employees to achieve organisational goals. Toyota affected through
managers works like set objective and divide their objective to all department then motivate and
communicate clearly for achieve organisational goal so through this thing they developing
people. They also put effect on group's interest for organisation and get result. They also effect
shareholder and the employees. Its overall helps in achieve business goal.
Impact of leaders - Leaders are important for Toyota. Leader always improve morale of
all employees for achieving organisational goal and maximize productivity. They are also
responsible for improving communication with their employees and public because they put
effect on Toyota. They spread motivation in organisation and give also training. So, it overall
affect to organisation's productivity.
Recommendations- For future growth and development, managers and leaders can make
use of advancing technology so that profitability increases and operational costs reduces. (Slack
and Brandon-Jones, 2018).
TASK 2
1. Key Operations of Toyota
Key operations are basically those operations which are performed in organization to
increase profit directly or indirectly. Toyota uses a wide set of strategies for operation
management. Toyota Motors designs its goods and products by using advanced technology and
maintaining quality. It satisfies its customers by providing them good services which it identifies
through research and development. Toyota makes its process very efficient by waste
minimization and increased efficiency. Toyota design a different layout and good strategy to
design or sale a product and to increase sale and profit, it uses supply chain management. In key
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operations of Toyota, productivity measures play an important role because Toyota used
productivity measures for manufacturing and other process.
2. Roles and Responsibilities of Managers in key operational functional area
Goods and Services: Manager is responsible for managing production of goods and
services. Direct and indirect activities are managed and controlled by manager. Like operation
process, planning, control, performance improvements and indirect activities such as interacting
with managers of other functional area like financing, marketing, R&D etc.
Quality Management: Quality management is a process which included task and
activities for maintain a desired level of excellence in products. A Manager focus on maximize
the quality of product. For improve the quality Toyota uses Toyota Production System. A
manager addresses the firms strategic area of operation management through continuous
improvement.
Layout Design and Strategy: Layout is a design which aims to improve efficiency
according to function. Layout designs in Toyota is very crucial process for it. In this functional
area manager work on maximum efficiency of workflow. A manager design layout which satisfy
companies standards by including decision of dealers also.
Supply Chain Management: Supply chain management is a process to acquire product
from raw material and distribute to final customers. Supply chain is crucial function of operation
management. A manager manages inventory through supply chain. In Toyota inventory level are
monitored to ensure excessive quantities on hand and operation manager is responsible for
finding vendors that supply the appropriate goods at reasonable prices and ability to deliver
product when needed. The main objective of supply chain is to ensure effective management,
monitoring and controlling of all the main activities which are held in Toyota (Liu, 2016).
3. Approaches of operation management and its value.
The key approaches of operational management of Toyota corp. are-:
Six sigma’s –
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It is a method for improving the quality of operations management of Toyota corp. by
reducing cost, eliminating errors and defects and helps in saving of time. It is valuable for Toyota
as reducing costs will increase the production as well as the profitability of the company.
Further, no errors and defects help in the smooth running of the company. However, as per
considering the role of a manager on which it can be said that, manager will be helpful as they
have proper information regarding the quality of operations and performance made in activities.
Lean Manufacturing – It is a method used by Toyota corp. which focuses on the
minimization of waste in manufacturing systems and also helps in the maximization of
production. It's value-ability can be checked as minimization of waste means recycling of waste
materials which results in low price of raw materials. Further, helping Toyota corp. to enhance
the production ability. The role of manager intitled with such operations in that, there would be
proper records regrading the material which are being used in here. Along with this, proper
allocation of all the resources in an effective manner.
Total Quality Management (TQM) –
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Illustration 2: Six Sigma
Source: Six Sigma, 2015

It is a continuous effort done by the Toyota management as well as by its employees in
order to ensure long term consumer loyalty and consumer satisfaction. Toyota corp. has divided
Total Quality Management into four categories-: Planning – Planning about how a particular task is to be done. This stage clears the role
of everyone involved. Doing – Execution of plan is done in this stage. Checking – Identification of errors is done in this step.
 Acting – This is the final stage where employees document their results.
By doing Total Quality Management Toyota ensures customer satisfaction and if the
consumers of the product are satisfied then it guarantees long time loyalty (Fiedler, 2015).
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Illustration 3: Total Quality Management
Source: Total Quality Management, 2016

4. Impact of external business environment factor that affect decision making of Toyota
An organization is affected by external factors. Political, economic, social, technological,
environmental and many other factors affected an organisation. Some factors are discussed from
which Toyota is affected such as
Technological: Technological factor affect the decision making of the leader as the
leader innovates the product of Toyota in the effective and efficient manner and as the advancing
technology changes, the leader has to adopt new techniques. On the other hand, manager has to
adopt training session for the employees to give them the knowledge of the advancing
technology. Toyota has to innovate and improve technology for lead the market.
Social factor: Every organization is affected by social factors. Toyota is global
organization and its product available in many countries and citizens of all countries have
different belief different values because of that Toyota is affected. Social factor affects an
organization on basis of belief and values of customers.
Political factor: The political factor also affects the decision making of the leader and
manager. As talking about health and safety law, leader has to bring products which are of
environment friendly and not beyond the law. The manager before taking any decision must
consider the health and safety measure of employees. The law bounds employees that no
employees has to works in the hazardous situations and the manager is responsible for the safety
of the employees and making sure that employees are being protected and work in safety
environment.
Economic factor: The major factor which affect the decision making of manager is
economic factor. As talking about the leader, they are the creative person and income affect them
in many ways as income are the indicator which shows ability to spend on product by the
customer. And on the other hand manager mange things according to the need of the customer
and also adopt different method according to the income which decide the demand and supply of
the product of Toyota (Villoria, 2016).
Justification:
As per considering all the relevant factors on which it can be said that, there must be
consideration over the operational activities and performance of manager and a leader in
accordance with making effective decision regarding business development. This macro analysis
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would be effective in enhancing the knowledge and ascertaining the risks involved in marketable
practices.
5. Management and leadership approaches to improve operational efficiency
Empirical Management Approach: Empirical approach is study of previous managerial
experience and situations. This approach helps a manager to found solutions for particular
situation. From this approach, if a manager has to take decision then from studying previous
experiences of persons a manager can select a right decision. It helps a manager to preplanning
of inventory management, supply chain and managerial decisions.
Situational Theory of Leadership: A most leadership style is which changes according to
situation. This theory improves operational efficiency by telling concept of this theory. It means
a leader takes decisions according to situation for improving efficiency and then tells employee
what to do. After telling concept in this approach selling concept is done by leader which
increases operational efficiency because in this step leader communicate with co-workers and by
asking them he gets new and innovative ideas for improve operational functions.
System Leadership Theory: This increases operational efficiency because according to this
theory, leader or manager motivate its employees and create a competitive and productive
environment by which efficiency of operational functions is increased (Thompson and Glasø,
2015).
6. Conclusions and Recommendations
From the above study of operational functions, it has been summarized that key functions
of operational management are crucial for achieving target and goals. Leadership and
management theories and skills impact these functions. Supply chain management and Total
quality management approaches are used to improve and maintain quality in process of key
operational functions. Toyota can improve operational efficiency by giving advance training to
its employees which will increase its productivity. Toyota should make organization as people
centric where relationships are important it will help to grow and retain employees. Toyota must
review its processes of automation, manufacturing and others. Toyota has to improve customer
service because it will help to decrease barriers of success for this organization.
CONCLUSION
From the above study, Role of managers and leaders are highlighted in the above report.
This report covered six sigma, total quality management and lean manufacturing approaches of
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operation management. How political, social, technological factors affected Toyota is discussed
in above study. Manager and leader’s role in Toyota is explained in above study and how Toyota
can increase its efficiency. It is concluded above the study that operation and managements are
help to increase the productivity and structure of organization and in that leader and manager
play important role.
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REFERENCES
Books and journals
Amado, G. 2018.Leaders in transition: The tensions at work as new leaders take charge.
Fiedler, F.R.E.D. 2015. Contingency theory of leadership.Organizational Behavior 1: Essential
Theories of Motivation and Leadership.232.
Liu, S., et.,al. 2016. New progress of grey system theory in the new millennium.Grey Systems:
Theory and Application.6(1). pp.2-31.
Mavin, S.A., et.,al. 2016. Women managers, leaders and the media gaze: Learning from popular
culture, autobiographies, broadcast and media press.Gender in Management: An
International Journal.31(5/6). pp.314-321.
Nelson, K.L. and Svara, J.H. 2015. The roles of local government managers in theory and
practice: A centennial perspective.Public Administration Review.75(1). pp.49-61.
Pavlineri, N., Skoulikidis, N.T. and Tsihrintzis, V.A. 2017. Constructed floating wetlands: a
review of research, design, operation and management aspects, and data meta-
analysis.Chemical Engineering Journal.308. pp.1120-1132.
Slack, N. and Brandon-Jones, A. 2018.Operations and process management: principles and
practice for strategic impact. Pearson UK.
Thompson, G. and Glasø, L. 2015. Situational leadership theory: a test from three
perspectives.Leadership & Organization Development Journal.36(5). pp.527-544.
Tummers, L. and Knies, E. 2016. Measuring public leadership: Developing scales for
four key public leadership roles.Public Administration.94(2). pp.433-451.
Valiga, T.M. 2019. Leaders, managers, and followers: Working in harmony.Nursing2019.49(1).
pp.45-48.
Vega, G. 2018. Facilitating Conflict Resolution in Organizations: A Curriculum for Managers
and Emerging Leaders.
Villoria, M. 2016. Contingency theory of leadership.Global Encyclopedia of Public
Administration, Public Policy, and Governance. pp.1-7.
ONLINE
Six Sigma. 2015. [ONLINE] available through <http://leansixsigmadefinition.com/glossary/six-
sigma/>
Total Quality Management. 2016. [ONLINE] available through
<https://www.toolshero.com/quality-management/total-quality-management-tqm/>
Divisional Organizational Structure. 2017. [ONLINE] available through
<https://www.accountingtools.com/articles/2017/5/13/divisional-organizational-structure>
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